This new year — and really any year — anything you can dream up in the market can and will happen at some time. Those events can last longer than you ever dreamed possible…or not. The duration is always unpredictable.
A good example is 2020.
The year started off with a gut punch in the form of a global pandemic. Commentators started to talk about how the pandemic would destroy the stock market— but it held pretty steady. Then in March, the market suddenly dropped by a third. People were scared to death, and rightly so.
Then, the prognosticators came out of the woodwork after the market rallied a little bit and said, “Don’t get too excited, we’re going to have a double bottom.” Well, the people who listened to the prognosticators probably never got back in. But the market came back faster than anybody could have ever dreamed.
So it’s unpredictable. Trying to predict the market is not only a fool’s errand, it’s certain to come at a high price.
The most important thing in investing is to avoid the big mistake: Giving in to your emotions. The headlines will scare, and they may not mean that much (certainly for investing). An advisor can give you the context behind the headlines.
Contact VIAIV today to learn more about our services.
Jeff Holland | VIAIV